Have Insiders Sold Central China Management Shares Recently?

Anyone interested in Central China Management Company Limited (HKG:9982) should probably be aware that the Chairman, Po Sum Wu, recently divested HK$3.0m worth of shares in the company, at an average price of HK$0.10 each. However, the silver lining is that the sale only reduced their total holding by 1.6%, so we're hesitant to read anything much into it, on its own.

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Central China Management Insider Transactions Over The Last Year

In fact, the recent sale by Po Sum Wu was the biggest sale of Central China Management shares made by an insider individual in the last twelve months, according to our records. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$0.093. So it may not tell us anything about how insiders feel about the current share price.

Po Sum Wu divested 84.64m shares over the last 12 months at an average price of CN¥0.13. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Central China Management

I will like Central China Management better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Central China Management Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Central China Management insiders own 48% of the company, worth about HK$172m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Central China Management Insider Transactions Indicate?

An insider sold Central China Management shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, Central China Management makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Central China Management. To that end, you should learn about the 4 warning signs we've spotted with Central China Management (including 2 which are concerning).

Of course Central China Management may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.